BUSINESS BUSINESS | 02 BUSINESS | 03 BoE slows bond Italy’s Atlantia purchases as seeks EU it sees some support in clash recovery signs with government FRIDAY 19 JUNE 2020 Your Global Remittance Partner Currency TT Rate Currency TT Rate Currency TT Rate Currency TT Rate QAR/INR : 20.73 QAR/PHP : 13.62 QAR/LKR : 50.85 QAR/BDT : 23.16 EUR/QAR : 4.32 GBP/QAR : 4.78 CAD/QAR : 2.86 AUD/QAR : 2.71 CHF/QAR : 4.04 SGD/QAR : 2.83 KWD/QAR : 12.05 OMR/QAR : 9.58 MAIN BRANCH LULU HYPER MARKET SANAYYA (STREET 17) AL KHOR PH: 44441448 PH: 44650768 PH: 44510088 PH: 44213444 MATAR QADEEM MANSOURA - AL MEERA ABU HAMOUR BIN OMRAN - ALMEERA PH: 44655559 PH: 44357552 PH: 44621271 PH: 44162002 alzamanexchange www.alzamanexchange.com 44441448 Swiss National Europe’s central Bank signals to maintain bank hands out negative rates REUTERS - BERN €1.3tln in loans The Swiss National Bank will keep its ultra-expansive mon- etary policy for “some time” after AP - FRANKFURT cutting its inflation outlook and saying it needs negative rates and The European Central Bank has currency interventions to shield handed out €1.31 trillion ($1.46 The credit offer Switzerland from the corona- trillion) in long-term, ultra- virus driven-recession. cheap credit to hundreds of takes its place Switzerland is facing its banks as part of its emergency alongside the sharpest downturn in decades support aimed at cushioning the after the pandemic shut down impact of the coronavirus pan- bank’s pandemic many businesses, pushed up demic on businesses and bond purchase unemployment and dented workers. demand at home and abroad. The three-year loans are programme, which The SNB expects Swiss GDP aimed at making sure banks can is pumping €1.35 to shrink 6 percent this year, the keep lending to companies so German output to drop by 6.8% worst downturn since the they don’t run out of money and trillion in newly German Chancellor Angela Merkel (right) and German Finance Minister Olaf Scholzs arriving at the aftermath of oil price shocks in go out of business during the created money into lower house of parliament Bundestag, in Berlin, Germany, yesterday. According to IfW institute report the 1970s, and sees no rise in crisis. That would cause a cas- released yesterday, German economic output is to drop by 6.8 percent this year, before growing by consumer prices before 2022, cading loss of jobs and income the economy. 6.3 percent in 2021. and then by just 0.2 percent. and hurt the long-term recovery Yesterday the SNB kept its from the severe interruptions to policy interest rate and the rate business due to the measures Similar measures to loosen it charges on sight deposits at aimed at limiting the spread of credit have been deployed by minus 0.75 percent, as unani- the virus. the US Federal Reserve and Sweden sees first ‘positive signals’ for economy mously expected by analysts The ECB said yesterday that other central banks around the polled by Reuters. 742 banks across the 19 coun- globe. AFP - STOCKHOLM there were indications of a signif- “I believe it will be necessary tries that use the euro currency The net amount loaned was icant drop in the second quarter, to maintain this expansionary took up the credit offer, which €548bn since banks were Sweden said yesterday that, fol- and then a slight improvement in monetary policy for some time,” can carry a negative interest rate allowed to exchange earlier, less lowing the downturn caused by the the second half of 2020. Most of SNB Chairman Thomas Jordan of as low as minus 1.0 percent favourable loans in return for coronavirus, it is beginning to see the contraction in Sweden could said. so long as banks keep up their the new offering. Nonetheless it the first positive signals and its be traced to lower investment, “We need a completely dif- lending to businesses. That was the biggest loan operation economy will not contract by as which Andersson said was under- ferent outlook before we can means banks are getting paid by in the history of the ECB, which much as initially expected this year. standable given the general uncer- change monetary policy, more the ECB to borrow the money, was founded in 1998 ahead of Finance Minister Magdalena tainty in the economy. inflation and also a much better an offer that many found hard the euro’s launch in 1999. The Andersson (pictured) said the gov- Despite signs of a turnaround, economic outlook,” he told to refuse. The ECB cut the rate fear among economists is that ernment now expected the the government did not expect journalists. on the offer from minus 0.5 the interruptions to business due Swedish economy to shrink by six GDP to reach the same level as The Swiss franc weakened percent at its April 30 meeting to the virus outbreak will elim- percent in 2020, instead of by She stressed that the 2019 until 2022. slightly against the euro after the as the virus lockdowns slammed inate otherwise viable busi- around seven percent as projected improvement had started from an Sweden has pursued a softer decision. The SNB’s new condi- the European economy. nesses. The European Union’s in April. unusually low level and there was approach to curbing the spread of tional inflation forecast of below The credit offer takes its executive commission estimates “Lately we’ve seen some pos- still considerable uncertainty over the new virus and allowed many 2 percent over the entire forecast place alongside the bank’s pan- that the eurozone economy will itive signals that suggest that we’ve the projections. businesses to stay open as other horizon, suggests it will hold the demic bond purchase pro- shrink by 7.75 percent this year. reached the bottom and that we Noting that Sweden actually countries have opted for strict lock- policy rate until at least the first gramme, which is pumping The ECB is the central bank are now seeing a turn upwards,” saw a slight gross domestic product downs. But Sweden’s economy has quarter of 2023, said Credit €1.35 trillion in newly created for the countries that use the Andersson told a press growth of 0.1 percent in the first taken a hit nonetheless, as it is Suisse economist Maxime money into the economy. shared euro currency. conference. quarter of the year, Andersson said heavily dependent on exports. Botteron. Wirecard scrambles to find missing EU must engage in lithium standards or lose to China, $2.1bn as loan crunch looms says EU’s Breton REUTERS - BERLIN file a complaint against unknown business operations,” Speich said. REUTERS -BRUSSELS The standards would cover persons,” Braun said. Bondholders were also lithium mining, extraction, Wirecard’s auditor has refused to Wirecard later added that it rattled, with its €500m bond due EU industry chief Thierry testing, analysis and conversion sign off its 2019 accounts over a had appointed James Freis as in 2024 down by more than 40 Breton has urged EU govern- to useful lithium compounds, missing $2.1bn, sending its shares management board for com- cents and last bid at 37 cents on ments to be more active in such as for use in lithium-ion down more than 60 percent as the pliance, replacing board member the euro, Tradeweb data showed. setting global standards for batteries. German payments firm said the Jan Marsalek with immediate Wirecard had already ultralight battery metal lithium, “The EU’s key trading delay could cause billions in loans effect. delayed its annual report after the key to many strategic industries partners are very active in to be called in as soon as Friday The firm also warned that a KPMG report, which addressed and electric cars, or cede tech- developing international (today). failure to provide certified annual allegations of fraud and false nological advantage to China. standards in key markets to EY was unable to confirm the and consolidated statements accounting in a series of Financial Breton’s warning under- protect and increase their com- existence of €1.9bn ($2.1bn) in expected to be relased today Times reports. lines the European Commis- petitive advantage,” Breton said cash balances on trust accounts, would allow approximately €2bn In the most serious finding, sion’s concern as China seeks in a letter to industry ministers representing around a quarter of in loans to be terminated. covering the years 2016-18, KPMG to increase its influence in in the 27 EU countries and seen its balance sheet, Wirecard said, In-house auditor EY had reg- who have questioned its financials said it had been unable to verify setting standards for a metal by Reuters. adding that there was evidence of ularly approved Wirecard’s and “shorted” its stock, which fell the existence of €1bn in revenue crucial to the bloc’s electric car “We need to be vigilant “spurious balance accounts in recent years, and its by 60 percent in Frankfurt, wiping Wirecard booked through three and green energy ambitions, about such processes which confirmations”. refusal to sign off for 2019 con- €8bn off its market value. obscure third-party acquiring involving major companies can, without the right Chief Executive Markus firms failings found in an external “We are stunned,” Ingo partners. such as Volkswagen, PSA and engagement, unintentionally Braun (pictured) said in yester- probe by KPMG in April. Speich, head of corporate gov- Activist investors, led by Siemens. harm our economic competi- day’s statement that Wirecard, Yesterday’s twist is a stark ernance at $350bn fund manager British fund manager Chris His warning comes ahead tiveness and technological which was founded in 1999, was reversal of fortune for the Munich- Deka Investment, which owns Hohn, seized on the KPMG of a June 24-25 vote by the leadership,” he said.